In the history of the Premier League, four clubs have reported a pre-tax profit above £100m, namely Wolves £145m (2020/21), Tottenham £139m (2017/18), Brighton £133m (2022/23) and Liverpool £125m (2017/18). They were followed by Leicester City £92m in 2016/17, which was the season when the Foxes reached the Champions League quarter-finals.
It’s worth noting Tottenham’s good track record in terms of
profitability, as they have made three of the top eight profits, though it’s a
while since they “troubled the scorers”.
While only three clubs have ever reported a profit of more
than £100m in the Premier League (excluding exceptionals), losses above £100m
have been registered on no fewer than 12 occasions.
The highest ever loss is the £197m made by Manchester City
in 2010/11, followed by Chelsea £156m (2020/21), Manchester United £150m
(2021/22) and Everton £140m (2019/20). City
are responsible for four of the 14 highest losses, though three of those were
recorded during the massive investment phase between 2010 and 2012 following
the ADUG acquisition.
The reasons for Everton’s struggles with the Profitability
and Sustainability Regulations (PSR) are evident from this analysis, as they
have posted four of the 20 worst losses, including three in the top 11.
Similarly, Leicester City and Aston Villa both have two of the highest losses.
Premier League clubs have lost more than £100m at the
operating level on 20 occasions, though two clubs clearly “lead” the way here. Only one club has ever lost more than £200m,
namely Chelsea, who have done this twice – in the last two sets of accounts
with £218m in 2022/23 nearly matching the record £224m in the previous season.
The Blues also have the fifth highest operating loss with £159m in 2020/21.
Leeds United lost a hefty £106m at the operating level in
2022/23, which shows that the Premier League is not a panacea for all a club’s
problems. Yes, there is a huge increase in revenue (“the £170m play-off final”,
yawn), but a promoted club will then have to invest heavily if it wants to have
a realistic chance of competing at the higher level.
Manchester City set the Premier League revenue record of
£713m in 2022/23, partly thanks to their success on the pitch, as they won the
treble. Despite their struggles in the league, Manchester United still
generated the second highest revenue in England in 2022/23, though their £648m
was a fair way back.
Old Trafford might be in desperate need of refurbishment,
but this did not prevent Manchester United generating the highest match day
revenue in the Premier League of £136m in 2022/23 – and indeed nine of the top
ten in history.
However, Tottenham’s investment in their new stadium means
that they are coming up fast on the rails, so they now have the second highest
in this revenue stream with £118m, again in 2022/23. Apart from those two, only one other club has
to date generated more than £100m in match day revenue, namely Arsenal, whose
highest was £103m in 2022/23.
Chelsea have by far
the highest net transfer spend, as their £542m in 2022/23 is again more than
double the next highest, Manchester City £250m (2017/18), followed by Arsenal
£230m (2022/23) and Manchester United £218m (2022/23).
Interestingly, Nottingham Forest’s £163m in 2022/23 is the
eighth highest ever in the Premier League – and more than the all-time highs at
Liverpool £163m (2018/19) and Tottenham £136m (2021/22). This goes a long way
to explaining their issues with PSR.
Newcastle United have been active since the arrival of their
Saudi owners, notching up two of the top 20 net spends: £150m in 2022/23 and
£142m in 2021/22.
The cost of operating at the higher echelons of the Premier
League has grown to three-quarters of a billion pounds in 2022/23, as seen by
the highest total expenses of £761m at Chelsea and £754m at Manchester City. Manchester United £681m Liverpool £632m and
Tottenham £610m are a fair way back, but also pretty high, though Arsenal were
“only” £521m.
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